Insurance Services
Every business faces unique buyer risk. We take the time to understand yours — then structure coverage that fits your trade lanes, customer base, and growth goals.
Trade Credit Insurance
Trade credit insurance, also known as accounts receivable insurance, is a risk management tool that protects against domestic and foreign customer insolvency, protracted default and political risks such as currency inconvertibility, expropriation, and nationalization. In addition to risk management, companies use trade credit insurance to improve their borrowing capabilities, increase their sales revenue, and negotiate better purchase agreements with their suppliers.
If you are considering trade credit insurance for your business or just looking to better understand the different options available, we would welcome an opportunity to talk with you. We work with our clients to understand their underlying motivation for obtaining insurance and make sure each policy is specifically structured to each of our clients needs.
As an independent brokerage, we represent your interests across the entire trade credit insurance market. We work with all major carriers, including Allianz Trade (formerly Euler Hermes), Atradius, Coface, AIG, and Chubb, to ensure you receive the most competitive rates and broadest coverage available. Our carrier-agnostic approach means we are never limited to a single insurer’s products. Instead, we compare options across the market and recommend the solution that best fits your specific risk profile, trade lanes, and growth objectives.
Trade credit insurance is particularly valuable for companies that extend payment terms to their customers, whether domestically or internationally. If a buyer becomes insolvent, files for bankruptcy, or simply fails to pay within the agreed terms (known as protracted default), your policy covers a significant portion of the outstanding receivable, typically between 80% and 95%. This protection allows businesses to confidently extend credit to new customers, enter unfamiliar markets, and grow their sales revenue without taking on disproportionate risk.
Beyond risk mitigation, trade credit insurance offers several strategic business advantages. Insured receivables are viewed more favorably by lenders and financial institutions, often enabling businesses to secure better borrowing terms and increase their credit facilities. Many of our clients find that their trade credit policy pays for itself through improved financing arrangements alone. Additionally, most trade credit insurers provide access to proprietary buyer credit data and monitoring services, giving you early warning signals about the financial health of your customers before problems arise.
The cost of trade credit insurance varies based on several factors, including your industry, the geographic markets you sell into, your claims history, the creditworthiness of your buyer portfolio, and the coverage limits you require. Premiums typically range from 0.1% to 0.5% of insured sales, making it one of the most cost-effective risk management tools available to mid-market businesses. Our team at Impello Global works to secure the most favorable terms by leveraging our relationships across all major carriers and presenting your risk profile in the best possible light.
As a proud EXIM Bank Platinum Broker, Impello Global holds the highest designation available from the Export-Import Bank of the United States. This status reflects our deep expertise in export credit insurance and trade finance, and it gives our clients access to government-backed insurance programs that protect against both commercial and political risks in international trade. Whether you are an established exporter or exploring overseas markets for the first time, our EXIM expertise helps you compete globally with confidence.
When a covered loss occurs, our team guides you through every step of the claims process. Filing a trade credit insurance claim typically begins with notifying your insurer of a past-due receivable once it exceeds the policy’s waiting period, usually 60 to 90 days. From there, the carrier may initiate collection efforts on your behalf or proceed directly to claim settlement. Impello Global acts as your advocate throughout this process, ensuring timely communication with the carrier, proper documentation, and the fastest possible resolution. Our hands-on approach to claims management is one of the key advantages of working with a specialized broker rather than purchasing coverage directly from a carrier.
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Part of your business efforts goes into managing your accounts receivable department effectively. Why? If the money is outside, it isn't helping your business to grow. In addition, the longer a debt remains unpaid, the higher the chances of the debt becoming bad (unrecoverable).
Debtors can default for many reasons:
Closing the business or going bankrupt (fewer than 25% of businesses survive past 15 years)
Death or illness
Fraud or willful non-payment
Cash flow problems - they can’t afford to pay
Accounts receivable insurance helps you hedge the risk of your accounts receivable ledger. As insurance brokers, we help secure coverage to cushion you against losses if you’re unable to collect from certain debtors.
EXIM Bank provides lenders with a 90% guarantee and permits the lenders to provide working capital loans to its customers with the following parameters:
Up to 75% advance rate on export-related inventory
Up to 90% advance rate on foreign receivables
Standby letters of credit (“SBLC”) issued as bid bonds and performance or advance payment guarantees can be issued with collateral as low as 10% of the value of the SBLC.
Our team at Impello Global has nearly 15 years of experience working with EXIM Bank and their Working Capital Program. We have assisted banks and companies to obtain delegated authority, establish internal best practices, and develop formal credit policies and procedures. We have built a lasting relationship with the EXIM Bank team and have successfully processed and collected on claims when needed.
If you are thinking about offering this program to your clients or looking for ways to improve and grow your current capabilities, Impello Global can assist. Our team will conduct a full analysis of your current capabilities and provide a step by step plan to implement and optimize your team’s performance. We also offer services to help you manage the program over time or through a transition, tailored to your specific situation.
To read more: EXIM Bank WCGP
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When you can’t collect payments from a customer, you absorb the loss yourself, which impacts your bottom line. Consider these accounts receivable statistics from a 2018 report:
Over 64% of businesses said their overdue invoices increased from 2017
90% reported late payments, especially by B2B clients
Debtors now take an average of 61 days to clear invoices, up from 63 days in 2017. Average payment terms are 31 days, up from 27 days in 2017
49.6% of debtors did not pay on time for lack of funds
Businesses reported 1.8% of their accounts receivable uncollectable, i.e. bad debts
Will you refuse to extend credit because of this? Probably not, because that will reduce your sales significantly.
This is where accounts receivable insurance comes in. By insuring your accounts receivable, you are able to offer credit sales to customers without worrying about whether or not you will be paid.
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Apart from protecting your business from losses associated with bad debt, accounts receivable insurance can do the following:
Empower you to borrow using your AR ledger as collateral. With coverage, lenders can give you up to 90 percent of your total domestic and foreign ARs
Improve your balance sheet because you can reduce your allowance for bad debts - which increases your earnings
Offer customers better credit and payment terms to increase your revenue without increasing your risk
Service large credit orders that would cripple the business if they went unpaid
You can get these and many more benefits tailored to your exact business needs. As a bonus, our team can help you streamline your AR ledger by advising on credit terms and collection strategies.
By leveraging trade credit insurance to mitigate the enforcement risk associated with foreign A/R, banks can enable its client base to include insured foreign A/R as eligible collateral. As a result, collateral availability will increase, allowing the bank to offer larger loan facilities to meet their client’s needs.
Impello Global’s experience implementing insured receivable finance programs is unmatched in the industry. We work hand in hand with our clients to write, implement, and improve internal credit policies along with ongoing compliance and monitoring programs. In addition to making sure our clients internal policies and procedures are impeccable, we work closely with our client’s borrowers to make sure they also have proper procedures in place to comply with their policy requirements.
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Accounts receivable insurance can help you in the following circumstances:
Mitigate the risk of non-payment due to protracted default, insolvency, losses due to political risk, etc.
Help to grow business with new clients without taking on excessive new risks with unknown payment history
To help improve collateral quality which in turn will entice lenders to provide higher advance rates and more favorable terms to finance short term working capital needs
Reduce concentration risks to individual customers or country concentrations
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Contact us today to find out how we can help you secure one of, if not, the most significant assets your business has.
Trade Credit Policy Types
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An insurance policy underwritten to cover sales to a single buyer. In many cases, this coverage is sought after due to the insured obtaining a new client or expanding sales to an existing client under terms which are more aggressive than prior trading history. This coverage is primarily available through EXIM Bank and a select number of private insurers. Given the risk is concentrated in a single account debtor, coverage tends to be more restricted and harder to obtain.
Talk with us today about your insurance needs. We would love to learn more about your business and help you find the right solution.
EXIM Bank provides lenders with a 90% guarantee and permits the lenders to provide working capital loans to its customers with the following parameters:
Up to 75% advance rate on export-related inventory
Up to 90% advance rate on foreign receivables
Standby letters of credit (“SBLC”) issued as bid bonds and performance or advance payment guarantees can be issued with collateral as low as 10% of the value of the SBLC.
Our team at Impello Global has nearly 15 years of experience working with EXIM Bank and their Working Capital Program. We have assisted banks and companies to obtain delegated authority, establish internal best practices, and develop formal credit policies and procedures. We have built a lasting relationship with the EXIM Bank team and have successfully processed and collected on claims when needed.
If you are thinking about offering this program to your clients or looking for ways to improve and grow your current capabilities, Impello Global can assist. Our team will conduct a full analysis of your current capabilities and provide a step by step plan to implement and optimize your team’s performance. We also offer services to help you manage the program over time or through a transition, tailored to your specific situation.
To read more: EXIM Bank WCGP
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Key account insurance is intended to cover a specific segment of clients, other than credit quality. For example, companies often look to insure their top 5 or 10 customers, or may want to insure all sales in a specific geography. Other examples of when a key account policy makes sense is when a company factors or sells select customer receivables and the factor or buyer of the receivables requires insurance.
Talk with us today about your insurance needs. We would love to learn more about your business and find ways to help you finance your growth.
Impello Global partners with our banking clients to allow them to offer these loan structures without requiring the expense of hiring an internal team. We work with our clients from the beginning stage of identifying the opportunity through documentation and funding and then continue to provide ongoing support until each loan is fully repaid.
If you are thinking about offering any of these programs to your clients or are looking for ways to improve and grow your current capabilities, Impello Global can assist. Our team will conduct a full analysis of your current capabilities and provide a step by step plan to implement and optimize your team’s performance. We also offer services to help you manage these program over time or through a transition, tailored to your specific situation.
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Much like the opposite of Key Account insurance, some clients choose to insure all receivables, except a specific segment, which is often referred to as a multi-buyer policy. Examples of this would be insuring all foreign receivables except Canadian receivables. Policies insuring all domestic receivables, all foreign receivables or both domestic and foreign are also referred to as multi-buyer insurance policies.
In addition to risk mitigation, multi-buyer insurance policies are often used to improve a company's access to working capital financing. Lenders often limit collateral eligibility for receivables that have concentration risks, longer payment terms, or that are payable from foreign account debtors. By insuring those receivables, lenders will often include them as eligible collateral, and therefore, improve the company's access to working capital financing.
Whether you are looking to insure against a default by one of your clients or to improve your company's access to working capital financing - or both, we would be delighted to help you find the right solution.
By leveraging trade credit insurance to mitigate the enforcement risk associated with foreign A/R, banks can enable its client base to include insured foreign A/R as eligible collateral. As a result, collateral availability will increase, allowing the bank to offer larger loan facilities to meet their client’s needs.
Impello Global’s experience implementing insured receivable finance programs is unmatched in the industry. We work hand in hand with our clients to write, implement, and improve internal credit policies along with ongoing compliance and monitoring programs. In addition to making sure our clients internal policies and procedures are impeccable, we work closely with our client’s borrowers to make sure they also have proper procedures in place to comply with their policy requirements.
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Medium term insurance is a more specialized insurance coverage, primarily intended for capital equipment sales. Generally, the coverage period will range from one - five years, with exceptions up to seven years for specific types of capital equipment. In most cases, these policies are written on a single buyer basis, require some form of down payment with a prearranged payment schedule and are documented with a promissory note. The majority of medium term insurance policies are structured to include a bank as a funding source. Therefore, the ability to understand the banking requirements is critical for these programs to be successful.
Our team has spent the past 15 years actively structuring, insuring, and funding medium term transactions. We would welcome an opportunity to learn more about your business and help you structure and implement a successful medium term program.
Political Risk Insurance
Political risk insurance insures against losses caused by expropriation or confiscations, currency inconvertibility, political violence, and governmental contract frustrations. Political risk coverage is generally included in the typical trade credit insurance policy; however, political risk coverage can be purchased specifically for government contracts and is very commonly used for overseas expansions to protect the value of acquired business assets.
Talk with us today about your political risk insurance needs. We would love to learn more about your business and help
Political risk insurance is essential for businesses operating in or exporting to emerging markets where government actions can directly impact your investments and receivables. The four primary categories of political risk coverage include: currency inconvertibility, which protects against the inability to convert local currency into U.S. dollars or transfer funds out of a country; expropriation, which covers the seizure or nationalization of your assets by a foreign government; political violence, which provides protection against losses caused by war, revolution, insurrection, terrorism, or civil unrest; and contract frustration, which covers losses when a government entity repudiates or breaches a contract.
Standalone political risk policies are commonly used by companies making foreign direct investments, acquiring businesses overseas, or entering into long-term contracts with government entities in developing nations. These policies can protect equity investments, physical assets, and anticipated income streams against government interference. Coverage terms typically range from one to fifteen years, depending on the nature of the investment and the risk profile of the host country.
Impello Global has extensive experience structuring political risk coverage for clients across a wide range of industries and geographies. Whether you need protection for a single high-value export contract to a frontier market or comprehensive coverage for a multi-country investment portfolio, we work with both private market carriers and government-backed programs, including the U.S. International Development Finance Corporation (DFC) and EXIM Bank, to design the optimal solution for your situation. Our team stays current on global political developments and sovereign risk ratings to provide proactive guidance as conditions evolve in the markets where you operate.you find the right solution.
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Email: info@impelloglobal.com
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